Climate Assets, emission reduction expectations and where they are headed
Over the past few months, the surge in impact investing and growth of climate assets has been incredible. Climate assets are those assets that positively contribute to the environments’ sustainability and the world’s betterment in some way. These assets are backed by strong ethical and social values and aim to deliver not just profits but also long-term growth and overall sustainability.
Biodiversity is generally overlooked, but not anymore. We say it with immense pride that over 100 leading countries representing over 80% of the world’s total forest area have promised to stop the deforestation processes by 2030. China, Brazil and Russia are among the top signatories to the pledge.
India, too, has been committed to generating over 50 percent of its total electricity only through renewable sources for its population. It has also shown promising results in decreasing its carbon intensity by 45 percent by 2030. However, the small print of the country’s targets are yet to be understood and analysed closely, along with its reposting mechanisms that are still unclear.
COP26’s big win
COP26 is one of the most recently held annual UN climate change conferences. Its biggest win this year was the zero-emission vehicles and subsequent mobility. Since transportation is responsible for almost one-fourth of the globe’s carbon emissions, road vehicles alone account for about three-quarters of the same. This is why it has become so important to adopt electric vehicles and take the first step towards reducing carbon emissions. There were pledges delivered in this conference that remarked phasing out any internal combustion engine passenger vehicles that still exist by 2035 in all the developed countries and by 2040 in developing and under-developed countries.
New electric models are being launched almost every few months, and their charging times are constantly improving. Many countries have even started installing electric vehicle charges in petrol stations, parking lots and near their housing complexes. China and Europe have led the way in terms of CO2 emission bans across the country. This implies that the electric vehicle revolution is being worked upon with full force. To succeed, however, it is imperative that countries take into account how important it is to support the revolution with electronic vehicle charging infrastructure and the vehicles being powered by renewable energy only. Countries setting their EV targets surely do have to raise their investments in the charging infrastructure by at least 30 percent every year to reach targets on time, as expected by the International Council on Clean Transportation.
Companies that are ready to adapt to new technologies and innovations in the EV industry to not only develop vehicles but also fuels in the future are the only ones who can rule the industry when the time comes.
Aviation, as well, requires an alternative and sustainable fuel. Biofuels and hydrogen are the only possible alternatives as of now to replace kerosene. Airlines across the globe have committed to a net-zero caron emission by 2050, contributing to the betterment of the Earth’s overall sustainability. Where the airline industry should head is clear, but how do they get there is still a question unanswered.
During the COP26 conference, Rivian Automotive, which is a US electric pickup and truck manufacturer, went public on the US stock exchange. Amazon owns almost 20 percent of the company, and they have already placed an order for one hundred thousand units by the end of 2030. Even then, the company is a loss-making venture as of now. The launch date of the Rivian trucks has been pushed back, and none of them will be on the road until the end of 2022. How many Rivian trucks will be available for delivery still depends on the supply chain management, and any discrepancies in the same due to any expected lockdowns will act as a hindrance.
How can an individual contribute to reducing emissions?
- Fly as little as possible
- Choose travel destinations carefully, preferably near to the place where you live
- Consume as many seasonal and local products as possible
- Limit consuming any sort of meat
- Switch to only reusable shopping bags and absolutely no plastic
- Try and take your own containers when eating out
- Minimise wastage in all ways possible
Conclusion
The carbon footprint and emissions are expected to reduce to a great extent by 2030 since all countries have started to work towards it in some way or the other. New and healthy habits are also being adopted, such as banning plastic, using own cutlery, switching to electric vehicles and more, which will definitely lead to a decrease in carbon emissions. To net zero the emissions by the mid of this century, it is essential that the global emissions fall to at least 18 Gt CO2 every year by 2030.
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